Powerex will significantly expand its domestic manufacturing capabilities with a $30 million investment from the Department of Commerce, directly funding both production modernization and research & development. The agreement earmarks resources for the company’s Pennsylvania facility, a key U.S. manufacturer of silicon carbide power modules, components increasingly vital to a range of sectors from national defense to the rapidly growing electric vehicle market. These modules are not simply industrial components; according to Bill Frauenhofer, Executive Director of Semiconductor Investment and Innovation, “Silicon carbide power modules are critical components for defense systems, industrial motor drives, electric vehicles and multiple other industrial applications.” This investment aims to secure a reliable domestic source for power electronics and address vulnerabilities within the power conversion supply chain.
Beyond increasing output, the agreement supports innovation within the company’s portfolio of discrete devices, including IGBT and high-voltage power modules. This commitment to expanding research alongside manufacturing capacity signals a long-term strategy to maintain U.S. leadership in semiconductor technology, rather than solely addressing immediate supply constraints. Powerex’s technology currently underpins critical infrastructure and military hardware, highlighting the broad impact of this investment.
Silicon Carbide Modules Strengthen Domestic Semiconductor Supply Chains
A $30 million Direct Funding Agreement between the Department of Commerce and Powerex will significantly bolster domestic production of silicon carbide power modules, essential components increasingly utilized in diverse sectors. Powerex currently provides vital components for both national defense infrastructure and emerging electric vehicle technologies, highlighting the dual-use nature of its products and the importance of a secure domestic source. The modernization in Pennsylvania is expected to impact local employment and economic growth as demand for these specialized modules continues to rise. The funding will allow Powerex to address critical choke points within the power conversion supply chain, ensuring the United States isn’t overly reliant on foreign manufacturers for these essential components; this strategic investment reinforces the nation’s ability to produce key technologies domestically, supporting both commercial and military applications with a resilient and secure supply of silicon carbide power modules.
Silicon carbide power modules are critical components for defense systems, industrial motor drives, electric vehicles and multiple other industrial applications.
Bill Frauenhofer, Executive Director of Semiconductor Investment and Innovation
